Watching the World: Deep in the forest

Feb. 25, 2002
Hidden away in a clearing in the UK's Sherwood Forest, the home of the legendary Robin Hood and his merry men, is a striking memorial statue to a group of more real-if less famous-heroes: the US oilmen who served during World War II to develop Britain's onshore oil industry.

Hidden away in a clearing in the UK's Sherwood Forest, the home of the legendary Robin Hood and his merry men, is a striking memorial statue to a group of more real-if less famous-heroes: the US oilmen who served during World War II to develop Britain's onshore oil industry.

Even many who live nearby don't realize the statue is there or even that Britain has had an onshore oil industry for more than half a century.

In fact Britain has a large onshore field at Wytch Farm on the southern coast that has been an important development site for oil field technology, such as horizontal drilling, and for environmental controls that demonstrate that oil production can be carried out within ecologically sensitive areas.

However, it is in the East Midlands coal field area of Sherwood Forest where small deposits of oil are quietly tapped and taken away by road and rail tankers.

And it is a sector of the industry that has a secure future following the recent awarding of 22 new onshore licenses by the UK Ministry of Energy.

New onshore licenses

Energy Minister Brian Wilson said, "I have decided to offer 22 Petroleum Exploration and Development Licenses. It's particularly good to be able to offer 14 licenses to companies concentrating on gas from coal mines, offering the potential for new activity in former mining communities. I hope this brings new activity and jobs to former mining areas while contributing to the UK's energy supply and helping to meet the government's Kyoto [protocol] targets by preventing unnecessary emissions of methane, a potent greenhouse gas.

"These licenses cover areas the length and breadth of the country and include acreage never previously considered for oil and gas exploration. It is encouraging to see licenses going to new applicants from both the UK and overseas. There are British, Italian, Canadian, and Australian companies here, as operators or as partners.

"The high level of interest shows that the UK's onshore oil and gas industry has a strong future. As well as the coal mine gas licenses, the other licenses show that conventional oil and gas is not being overlooked and continues to attract a high level of interest itself."

The awards will bring new names onto the list of UK operators: Alkane Energy UK Ltd., Sonorex Oil & Gas Ltd., Northern Petroleum (GB) Ltd., Black Rock Resources (UK) Ltd., Stratagas PLC, Stag Energy Ltd., Warwick Energy Exploration & Production Ltd., Archean Energy (UK) Ltd., and Coalbed Methane Ltd.

Regulatory concerns

However, the UK planning rules mean that even if the licenseholders discover oil and gas in commercial quantities, they still have to battle through lengthy permitting processes before bringing them into production.

The US oilmen who developed the UK onshore oil industry were working under wartime emergency regulations, and many planning rules were suspended.

Their new successors may have access to better equipment and techniques, which will make their jobs easier, but bureaucracy may be more difficult to combat than geological conditions.